Producer Company

Producer Company typically refers to a corporate body registered under Companies Act, 1956. The primary objective behind the incorporation of this kind of company is to enable cooperatives to act as a business entity under the Ministry of Corporate Affairs. The most distinctive part of this company is that only specific categories of individuals who are known as “primary producers” can become shareholders in the Producer Company. Here the term ‘Primary Producers’ refers to individuals involved into agriculture activities such as animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, re-vegetation, and bee-raising etc.

The members of the Producer Company are permitted to perform any of the following activities themselves or through other bodies.

1. production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit
2. rendering technical services, consultancy services, training, education, research anddevelopment and all other activities for the promotion of the interests of its Members;
3. generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
4. promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce.

There should be a minimum 5 Directors and 10 Shareholders/Members to setup a Producer Company. At Trademark Bazaar, we have all the necessary expertise, technical knowhow and resources that are needed to incorporate a Producer Company. We aspire to become your one-stop destination for all your company incorporation requirements.

From initial consultation to formulating things, our professionals are able to provide end-to-end support to individuals looking to setup a Producer Company. 

Salient features of Producer Company

• Producer Companyacts more likea Private Limited Company
• Despite being a Private Limited Company, a Producer Company can have more than 50 members
• Minimum 10 or more individuals as producers, or any two or more producer companies, or combination thereof, are required to setup a Producer Company
• Producer Company shall have at least 5 but not more than 15 directors.
• Conversion is not permissible into any other business configuration such as Pvt. Limited company, Public Limited Company, LLP etc.
• Producer Company shall have words “Producer Company Limited” at the end of its name. For example: Vanilla India Producer Company Limited.
• Voting rights in the producer company is aligned with the principle of “one man-one vote”, regardless of shareholding in the producer Companies.